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tv   Mad Money  CNBC  February 3, 2010 6:00pm-6:13pm EST

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acknowledged strongest bear cases of 2010 now seem to be wilting right before our eyes. and to think, it's only the beginning of february. that's right. earnings report by earnings report, the bears have been running out of some of the most frightening and scary arguments we heard going into this year. about why 2010 would be an extraordinary -- >> that was easy. >> house of pain. if not a giant condo. they've been vaporized over the last 24 hours, literally 24 hours, unlike the show "24," which takes several months to go through 24 hours. instead of a bunch of negatives that will weigh this market down, away from the obvious ones from beijing and washington, i'm beginning to think we may have some out of control sets of positives. a whole new group of rolling bull markets that no one ever
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expected, a load of upbeat facts that have utterly destroyed and undermined the kenards issued by the yogis, the boo boos, the cognacs and a number of professors who need to sell books, who all need the market down. what are these silent bear killers that have brought life back to a whole slough of sectors that many investors had left for dead? first, wasn't media, all media supposed to be road kill in 2010? yet time warner and newscorp just reported two of the best numbers i've seen during this earnings period. time warner's dividend boost was simply remarkable, incredible. i was trying to get more french in the show. newscorp is a set of solid assets, and the "avatar" gains haven't been seen yet. for all that looks like to be genuine bottoms in ganett and
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mcclatchy, i'm starting to feel a little more bullish about the media stocks, a sector that i, like many others, simply threw away a cup of years ago and viewed as trash ever since. fish wrap? fish wrap no more. then there's cable, an industry that was supposed to be slowing with sign-ups going down. seems like somebody forgot to tell comcast, because those numbers were amazing. verizon's phios is doing just fine bp and so is directv. people are signing up and paying for cable in record numbers despite a belief on wall street the internet is going to kill cable the way it did music and newspapers. premature obituaries all. how about commercial real estate, which according to the bears, was supposed to be 2010's biggest catastrophe? you know what this is like? this is like reagan. remember reagan? i probably missed exorcist.
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i read an article today about how the commercial investment trust managers are lamenting they raised so much equity money with nothing for sale. i asked somewhat plainatively, where the heck are the commercial real estate defaults, why haven't we seen them? if they have to get rid of bad debts or bad mortgage securitizations, you would think the buyers would be concerned with the distressed sellers. another removed from the bears' arsenal. don't get me started on housing. i think the brokers in this country are doing gangbusters business. they're not moaning and crying anymore. thanks to turns in florida, nevada, california, and lately even, get this, new york. that's right, new york. home sales are producing some truly impressive returns for everyone involved in real estate. i think it's possible that industry could soon go back into boon mode, where it won't need incentives to move.
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that is what happens after we bust and get another boon. just like i correctly called that bottom in housing last summer. i am telling you that i don't think we'll need incentives any time by the end of this year to sell real estate. the market is that strong. boy, no one is saying that except for mig, right? the autos, weren't they supposed to be dead, post cash for clunkers? of course it turns out the cash for clunkers month was the slowest in the last three months we've heard about for ford. this is before the toyota recall, which as someone who owns one of the recalled cars, i know it's going to be far more dangerous to toyota than most people realize. toyota's pain is ford's gain. i think it's going higher. which reminds me, anyone out there willing to drive my toyota back to the dealer for me after the show? let's face it. banking is now on the move. the regional banks are supposed to be the weak link in the system. the regional bank reports were the best of this period. everyone from huntington to fifth third of marshall to pnc
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is doing really well. plus, hey, did you watch the humiliation of the octogenarian, paul volcker, in the senate yesterday? you know his reformat is dead in the water. that's good news for investment banks like jp morgan and goldman sachs, both names in my charitable trust owns. the drug stocks, they are back and bigger than ever. ever since that special massachusetts election put an end to the democrats' supermajority in congress and put a stake, a stake through the heart of health care reform. biotech is on fire, enfuego, more foreign language. it's the best performing stock group of the year. it's not that we lack headwinds. when we came into 2010, we thought china would power recovery. even though we seem to have lost china, in true general stillwell fashion, the pupu platter has been passed, the mushu has gone
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cold, and we've got a whole new set of bull markets to take us higher. the sectors that have been left for dead are rising from the grave. serpent, if not rainbow like, to become our new bull markets. media, cable, commercial real estate, housing, the regional banks -- all the groups the bears told us needed to be put out of their misery in 2010. yes, the facts have changed. while we remain concerned about the president's khan-like wrath against the starship private enterprise, and we fear a chinese hard landing, we've got a whole new group of bull sectors to rode into while we wait for washington and beijing to take their collective jack boots off the markets' jugular. hey, how about charles in kansas?
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ncaa number one kansas. charles? >> caller: that's us. number one. >> good to be number one, charles. better than number two, just so you know, in terms of like numbers. >> caller: i'm wondering what's going on with huntington bank shares. >> monster good quarter. stock had a huge, huge run. that was my speculative stock of the year after we decided to go ka-ching, ka-ching on sallie m e mae. remember we decided to take profits. don't go back there. you're talking about a move from 3.50 to 5, and sometimes you're going to get profit taking, and that seems vicious. we should go to david in florida. david? >> caller: hi, jim. boo-yah. nice to talk to you. >> good to talk to you, spark. >> caller: all right. my question is on the raw material lithium. in that we are -- we seem to be heading towards a green environment, and the emphasis on
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alternative energy, or battery powered cars. what do you think about raw material that is mind or good to invest in. >> the other day i was having a cup of joe, and a guy came up to me and ask if i'm sticking with sqm. the stock has gotten hurt for five straight points. it got hurt because of the fertilizer side. the lithium from chile, and don't get perturbed the stock is going down. i want to return to florida. walter. >> caller: jim cramer, how are you? >> not bad, walter in florida. how are you? >> caller: i'm okay. i'm going to wish you a happy boo-yah, even though i don't know what it means. >> i think it's maseltov in southern. >> caller: you got the right person. my question is i own 15 or 20 blue chip stocks. i'm a few steps above being a novice.
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the market is going up, and i figured it was going on a continual basis. i started using margin. >> oh, why? why do you hurt me? >> caller: oh, i hurt you because it worked very, very well for me while it continued to go up. i really don't understand the intricacies of it. would you explain that to me. >> it's the devil's work, margin. that's what you need to know. i don't believe in buying on margin. when i was at a hedge fund, i never used it. you're betting stocks are going to go up. here's the problem. you can buy a house on a margin. that's a north, and you live in it. but you can't live in stocks. when they go down, they take them away from you. anybody on margin in this market, you are not my friend. am i clear? is you're not my friend. sectors like the media, real estate, there are banks. hey, how about -- what else? maybe even like newspapers. yeah, they rolled up for dead.
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while we wait for washington and china to lay off this market, we have taken these bear markets and thrown them away. stay with cramer. >> coming up, chasing paper. after some disappointing news, jim's finding out if the building blocks of our economy are still strong. cramer's getting answers from international paper ceo on the executive decision. and later, hard times for hard drives? as the world creates more data, the digital storage business has been on fire. does one stock run out of space? cramer's sizing up one tech company on an all new "sell block." all coming up on "mad money."
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